Ramp-Up Periods in Pay for Success Projects

Published Thursday, February 9, 2017 | by Brian Bieretz

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Pilots and ramp-ups serve very similar functions: both are trial runs of the project during which success or failure does not affect outcome payments, allowing the service provider and the intermediary the flexibility to address potential issues that may affect the overall success of the project. Ramp-ups are an early stage of the project timeline—generally a three, six, or twelve-month period, whereas pilot programs are typically distinct, standalone programs. This article focuses on the benefits of ramp-ups but also cautions that they should not be used to determine a program's effect.